Boris Johnson warns ‘things will be tough’ as furlough scheme replaced

PM’s comments come as chancellor warns: ‘I can’t save every business, I can’t save every job. No chancellor could’

Boris Johnson has warned the public “things will be tough” as the chancellor unveiled a less generous replacement for the coronavirus furlough scheme that has supported jobs throughout the pandemic.

As Rishi Sunak presented the government’s economic plan for the winter to MPs amid a resurgences in cases of Covid-19, the prime minister also appealled to the country “to work together” and reduce the R rate of the virus.

The new Job Support Scheme, the chancellor said, will top up employees’ wages who are unable to work full-time – replacing the furlough policy brought in as Britain went into lockdown in March.

The new programme, beginning in October, will allow staff to be paid by their employer for working at least a third of their usual hours, with the state topping up part of their salary that would have otherwise been lost due to reduced hours.

Mr Sunak said the Treasury would pay a third of an employees’ equivalent salary, capped at £697 – meaning a third will go unpaid.

Acknowledging that large numbers of jobs will be lost with the withdrawal of the furlough, Mr Sunak warned: “I can’t save every business, I can’t save every job. No chancellor could.”

Responding to his statement, Mr Johnson said on Thursday: “The chancellor is being totally realistic with people about the prospect of the economy - things will be tough.”

“What the Chancellor is saying today - we're continuing to do everything we can to support the work force, jobs and livelihoods throughout the crisis and again some very creative and imaginative proposals from the Chancellor.”

During a visit to a Northamtonshire police force, the prime minister said he was discussing the enforcement of the new restrictions by authorities, adding “it’s absolutely vital” that everyone follows the government’s instructions.

He said:“What we are saying is people who do the right thing, who self-isolate when they are contacted by NHS Test and Trace, they will get support.

“There’s also a £10,000 fine potentially if you don’t comply. It’s absolutely vital we all work together now to get the R down, get the virus back under control and simultaneously allow education and the economy to continue. That is the best thing for jobs, for growth in this country”.

Addressing why people should follow the instructions of the NHS Test and Trace app, Mr Johnson said: "The crucial thing is for people to follow the guidance, and when you're contacted by NHS Test and Trace and told that you've been in the presence of somebody with coronavirus - we're going to give you support to help you through the period of self-isolation.

"You should do that because that's the best way to stop the spread of the virus and just bear in mind now that there are also fines for people who don't follow the guidance and that is what I'm trying to say today.

"Our police do an amazing job. I don't want to add extra burdens to them at all but as you know we're increasing the number of police officers on the streets of this country by 20,000, a lot of them being recruited here in Northamptonshire.”